A staggering percentage of the car industry is skeptical that current government-led electric vehicle targets globally are unrealistic in the current climate.
This is a finding from the latest Global Automotive Manufacturing Prospects Survey commissioned by ABB Robotics and industry publication Automotive manufacturing solutions.
From a survey of around 600 workers in the value chain, 59% responded that the shift to zero-emissions production (mostly electric vehicles) is required by governments in Europe and the United States. “unattainable within current legislative timelines.”
The European Union wants to phase out new cars with internal combustion engines by 2035, with fight over allowing e-fuels remains a barrier to the law. The same timeline was given for the US states of California and New York.
Although 28% of survey respondents expressed the view that these types of deadlines are achievable, they also indicated that there will be “significant challenges”, while 18% believe that the goals will be met. present “will never be achieved”.
Only one 11 percent believes that all regional targets for electric vehicle adoption by 2030-2040 are realistic, the survey summary adds.
Respondents pointed to major challenges related to adapting the battery supply chain, the large capital investment required, the current shortage of raw materials, the right infrastructure, and even grid capacity.
The survey ended with 590 respondents – a high percentage being management level – tasked with examining current trends in auto production, from most major auto manufacturing regions. Respondents work for OEMs, design and engineering firms, as well as key parts and service providers.
When asked about providing sustainable manufacturing plants (net zero), industry leaders were far more positive, with 80% predicting sustainability could be achieved in the sector.
Another intriguing takeaway from the latest survey is the growing view that supply chain disruptions and increasing raw material costs are causing the global auto industry to reassess raw materials. core production principles.
This could even mean moving from the well-known ‘just in time’ ethos to a ‘just in case’ tactic, with manufacturers holding onto more components to protect against unintended disruptions. want.
Nearly two-thirds (62%) of respondents said ongoing supply chain concerns when asked to choose their top three challenges facing auto production, 41% said the impact of increase in the prices of raw materials and components, and 31% point to increasing labor costs and shortages.
The survey also revealed how manufacturers are turning to “increasing inventories and purchasing raw materials in bulk to limit the potential for disruptions elsewhere in the supply chain, while working with home networks.” wider supply to ensure there are enough parts.”
